1.0EXECUTIVE SUMMARYAirAsia needs no introduction in ASEAN, where it is the leading low-cost carrier, connecting people and places across 132 routes, 40 of which are offered by no other airline. In 2010, the Group, which includes affiliates AirAsia Thailand and AirAsia Indonesia, reinforced its leadership position with two remarkable milestones: flying its 100 millionth guest and breaking the RM1 billion profit barriers. AirAsia’s airline was established with the dream of making flying possible for everyone. Since 2001, AirAsia has swiftly broken travel norms around the globe and has risen to become the world’s best. With a route network that spans through more than 20 countries, AirAsia continues to pave the way for low-cost aviation through innovative solutions, efficient processes and a passionate approach to business. From an airline with two aircraft plying six routes in Malaysia in January 2002, AirAsia has soared in the last nine years to cover 65 destinations in 18 countries. Today, employing more than 8,000 staff and with a market capitalisation of just over RM7.06 billion (as at 31 December 2010), it is the only Truly ASEAN airline, serving the region’s 600 million population from 10 hubs in three countries - Kuala Lumpur, Kuching, Penang and Kota Kinabalu in Malaysia; Bangkok and Phuket in Thailand; and Jakarta, Bali, Bandung and Surabaya in Indonesia. In 2011, AirAsia has introduced two hubs, Chiang Mai for AirAsia Thailand and Medan for AirAsia Indonesia. Singapore functions as a virtual hub where AirAsia features among the top 10 airlines in terms of contribution to passenger traffic. Further strengthening its ASEAN network, the Group in December 2010 signed an agreement to establish a Philippine-based low-cost affiliate, which is expected to be operational by end 2011. [1] AirAsia focuses on high frequency and high turnaround of flights, both of which add to customer convenience and greater cost efficiencies. Its turnaround of 25 minutes is the fastest in the region. In AirAsia there are no frequent flyer miles or airport lounges in exchange for lower fares. Guests have the choice of paying for in-flight meals, snacks and drinks. In addition, a decision was made in December 2004 to...

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... AIRASIA
Executive Summary
Strategic management has played a key role in the success of many business organizations in the world including airlines and AirAsia is no exception. Commencing in 1996, within fifteen years, AirAsia managed to expand its operations into another ten countries. In addition, through its associate company AsiaX, it launched long-haul low-cost air services from Malaysia to Australia and the United Kingdom. This paper will look at the award winning Malaysian low cost carrier- Air Asia’s by analyzing its strengths and weaknesses using strategic tools such as PEST analysis, Michael Porters Generic strategies, SWOT matrix analysis, Porter’s Force Model Competitive Forces Model, BCG Matrix , Internal and External Factor evaluation Matrix and Competitive Profile Matrix and Financial Analysis and recommend the relevant strategies for adoption to pursue its continue its competitive differentiation and profitability. The paper also throw some insights into the Blue Ocean Strategy concept which is used by AirAsia as one of its strategic moves.
INTRODUCTION
Competition in the airline industry is very intense and growing rapidly. The airlines are using several strategies to compete with one another in the industry. Airline companies need to identify their strategic management to achieve their vision and mission and...

...TOWS…………………………………………………………………………………….3
Marketing Challenge…………………………………………………………………………7
Recommendation……………………………………………………………………………..7
I. Tap into the growing Asian Market………………………………………………………..7
II. Capitalize on the corporate business………………………………………………………13
Conclusion……………………………………………………………………………………15
AirAsia
Background Information
AirAsia is Malaysian low-cost airline that provides both domestic and international flights. AirAsia started operating on 18 November 1996, it pioneered low cost travelling in Asia. In 2001, the airline which was heavily indebted was purchased by Tony Fernandes's company Tune Air Sdn Bhd. Under his charge, AirAsia has become one of the biggest low cost airlines operating in Asia today. Its main hub is based in the Low Cost Carrier Terminal (LCCT) at Kuala Lumpur International Airport (KLIA). As such, AirAsia consumers tend to be from the lower to middle income population. Thai AirAsia and Indonesia AirAsia are subsidiaries of AirAsia and are based in Suvarnabhumi Airport, Thailand and Soekarno-Hatta International Airport, Indonesia, respectively.
Company Analysis
I. Segmentation
AirAsia target market segment consist of three different but overlapping segments that were segmented according to Geographic Segmentation, Demographic Segmentation and Psychographic Segmentation.
AirAsia is targets mainly the Asian market, hence the name AirAsia. As such, they do geographic...

...33-35 Bangunan Systematic,
Jln Hang Lekiu, 50100 KL
SEGi College Kuala Lumpur (SCKL)
PRINCIPLE OF MARKETING
EXECUTIVE SUMMARY
There are 4 marketing mix for AirAsia such as product, price, place and promotion. AirAsia should improve their service to satisfy their customer.
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Entry strategy for Airasia
Marketing Management
Table of Contents
Objectives………………………………………………………………………………………………………………….3
SWOT Analysis 4
PESTEL analysis 5
Market Segmentation and Target Market 6
Positioning 7
Pricing Strategy 8
Placement Strategy: 9
Promotion Strategy: 9
Conclusion……………………………………………………………………………………………………………………………………… 11
Appendices 12
References……………………………………………………………………………………………………………………………………..14
AirAsia is a Malaysian low-cost airline headquartered near Kuala Lumpur, Malaysia. AirAsia group operates scheduled domestic and international flights to 100 destinations spanning 22 countries. Its main hub is the klia2 (LCCT) at Kuala Lumpur International Airport (KLIA). The affiliate airlines are Thai AirAsia, Indonesia AirAsia, Philippines AirAsia, AirAsia Zest and AirAsia India .AirAsia X only focuses on long-haul routes. AirAsia's registered office is in Petaling Jaya, Selangor while its head office is at Kuala Lumpur International Airport.
10 years on after taking a bold chance to start a low cost airline, AirAsia’s CEO Tony Fernandes has built AirAsia from two planes to 115 aircraft today, flying to more than 400 destinations spanning 25 countries, making the slogan “Now Everyone Can Fly” come true. It operates with the world's lowest unit cost. It has hedged 100% of its fuel requirements for the next three years and achieves an aircraft turnaround time of 25 minutes whereas for others it is 45 minutes to 1.5 hours....

...Companies background
AirAsia Berhad is a Malaysian low-cost airline headquartered in Kuala Lumpur. It is Asia's largest low-fare, no-frills airline and a pioneer of low-cost travel in Asia.[4] AirAsia group operates scheduled domestic and international flights to 78 destinations spanning 25 countries. Its main hub is the Low-Cost Carrier Terminal (LCCT) at Kuala Lumpur International Airport (KLIA). Its affiliate airlines Thai AirAsia, Indonesia AirAsia, AirAsia Philippines and AirAsia Japan have hubs in Don Mueang International Airport, Soekarno–Hatta International Airport, Clark International Airport and Narita International Airport respectively. AirAsia's registered office is in Petaling Jaya, Selangor while its head office is at Kuala Lumpur International Airport.
AirAsia operates with the world's lowest unit cost of USD 0.023/ASK and a passenger break-even load factor of 52%. It has hedged 100% of its fuel requirements for the next three years, achieves an aircraft turnaround time of 25 minutes, has a crew productivity level that is triple that of Malaysia Airlines, and achieves an average aircraft utilisation rate of 13 hours a day.[7] All scheduled AirAsia departures from Kuala Lumpur use the Low cost carrier terminal. AirAsia had abolished its fuel surcharges on November 2008,[8] but, due to rising oil prices, the fuel surcharge was re-introduced in May 2011.
Details:
Founded 1993
Commenced operations 18 November 1996
Hubs Kuala...

...provide strategic feedback and learning. According to Bain, about 57% of global companies were working with the balanced scorecard technique in 2004.
COMPANY BACKGROUND
In the Association of Southeast Asian Nations (ASEAN) region, AirAsia Berhad (AirAsia) is a leading of Low-Cost Carrier (LCC). The main focus of AirAsia Group are to providing high frequency services on short-haul, international routes and also point to point domestic. The Group agreed to assume the debts of the company when it acquired the loss making from its Malaysian owner DRB-HICOM Berhad for a token of RM1 (USD0.25 cents). In December 2001, AirAsia was resurrected, re-branded and re-launched as a low-cost carrier following the acquisition of the Company by Tune Air Sdn. Bhd. With the drive and determination by Dato’ Sri Dr Tony Fernandes and with the support of his partners, the AirAsia Group (including its Thailand, Philippines, Japan and Indonesian affiliates) operates a fleet of 132 aircraft and flies to more than 78 destinations from hubs in Malaysia, Thailand, Indonesia, Philippines, Japan, India and in the upcoming future, Vietnam. In its short history, AirAsia has ferried more than 90 million guests and operates more than 3,500 flights a week. AirAsia’s popularity among the masses has propelled because of it underserved market segment. With over 160 routes covering Malaysia, Indonesia, Japan, Philippines and Thailand and with domestic and international routes, primarily from...

...environment – AirAsia started with two Boeing 737s that served the domestic market in Malaysia. It then expanded to include domestic and international destinations.
Economic environment – AirAsia also took consideration the changes in income. In 2001, the timing worked to the advantage of AirAsia since Asians were enjoying the benefits of rising incomes and good economic growth and although many could not afford long distance holidays, they were open to the idea of traveling to nearby countries.
Tecnological environment – AirAsia responded to the fast growth of internet usage during that time, and so they were able to reach more customers through online booking.
Political Environment – AirAsia faced some problems due to the heavily regulated air travel in Asia. Fernandes engaged the support of the former prime minister of Malaysia, Dr. Mahathir Mohamad, to network with neighboring countries in an effort to develop an open-skies agreement.
2. Discuss the micro and macro factors that would affect AirAsia's performance in the current competitive environment described in the case?
Micro Factors
AirAsia maintained a customer friendly relationship through offers as well. For example, they offered 1 million free seats to all their major destinations, customers having to pay only for the airport tax.
By keeping costs down and insuring a quick aircraft turnaround of 25 minutes, its cabin crew multitasks by serving customers and helping in cleaning.
To...

...by Tony Fernandes. It operates scheduled domestic and international flights. AirAsia is a pioneer of low-cost flights in Asia and is the largest Asian nofrills airline. In a very short time, after launching as an LCC, AirAsia converted from a debt ridden company to a profit making company.
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The airline was established in 1993 by a Malaysian government-owned conglomerate DRB-Hicom and started operations on 18 Nov 1996. 2001 Dec – Tony Fernandez takes over the loss making AirAsia for US$ 0.26 2002 Jan – Re-launched as first no frills LCC. 2002 Dec – First profit of US$ 6 million 2004 - Starts regional flights to neighbouring countries. Formation of Thai AirAsia in partnership with Thai Shin Corporation. 2004 Nov – Listing on the Malaysian stock exchange. 2005 - Indonesia AirAsia established, hubs in Jakarta and Bali. 2006 Mar – Main Hub moved from KLIA to neighbouring specifically built LCC terminal 2006 Aug – Domestic Route rationalisation arrangement with MAS, took over two third(96 out of 118) of MAS’s loss making routes. Becomes largest airline in Malaysia. 2007 - ‘AirAsia X’ launched, First long haul flight to Gold Coast, Australia. 2008 May – 25th consecutive quarter of profitability since 2002. 2009 - Servicing 18 countries, 84 Aircrafts, 136 routes, 627 flights per day...